Calculate the hourly rate you need to charge to meet your income goals, cover expenses, pay taxes, and save for retirement.
This is your net income after all business expenses and taxes
Standard SE tax is 15.3% (Social Security + Medicare)
Combined federal + state income tax rate
SEP-IRA allows up to 25% of net self-employment income
Note: Only ~60-70% of your work time is typically billable
Account for vacation, sick days, and slow periods
Extra buffer for unexpected costs and growth
Minimum Hourly Rate
$110/hr
Covers all costs, no profit buffer
Recommended Hourly Rate
$130/hr
Includes 20% profit buffer
Gross Revenue Needed
$151,675
Total Taxes
$56,575
Annual Expenses
$12,600
Retirement Savings
$7,500
Why freelancers charge more than employees
At $130/hr, you need $182,010/year in revenue. After 37.3% taxes ($56,575), $12,600 in expenses, and $7,500 for retirement, you keep $75,000.
| Hourly Rate | Daily (8hr) | Weekly | Monthly | Annual |
|---|---|---|---|---|
| $50/hr | $400 | $1,500 | $6,000 | $72,000 |
| $75/hr | $600 | $2,250 | $9,000 | $108,000 |
| $100/hr | $800 | $3,000 | $12,000 | $144,000 |
| $125/hr | $1,000 | $3,750 | $15,000 | $180,000 |
| $150/hr | $1,200 | $4,500 | $18,000 | $216,000 |
| $175/hr | $1,400 | $5,250 | $21,000 | $252,000 |
| $200/hr | $1,600 | $6,000 | $24,000 | $288,000 |
| $250/hr | $2,000 | $7,500 | $30,000 | $360,000 |